and you can eat well. >> thank you for coming to see us. tomorrow, jennifer tilly comes by. and elvis durant from z-100 morning show. >> i'm jim cramer, and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job isn't just to entertain you but i'm trying to teach you. call me at 1-800-743-cnbc. a wise man named andy dufresne famously once said, i guess it comes down to a simple choice really. get busy living or get busy dying.

don't know his stock work? he's a fictional character played by tim robbins in all time cramer fave "the shawshank redemption" but his quote sums up the dow today. there are two kinds of companies operating in this country at the moment. there are the ones that recognize they've got to do something to improve their fortunes, the ones getting busy living. then there are the companies that just sit there and do nothing -- the ones that are getting busy dying. the ceos who recognize the dufresne dictum, their stocks go higher. the ones who fail to heed dufresne, maybe haven't seen shawshank, they stay in global captivity and their stocks go lower. it's as simple as that. take a look at the big moves we saw today. they can be explained by management's recognition that they have to get busy living or get busy dying.

chuck bunch, ceo of ppg, he gets it. today bunch announced he's selling the commodity division which held them back to georgia gulf in order to accelerate the growth of ppg which was already the best run chemical company on earth. this move is brilliant in its simplicity. then calls to the fore the exciting specialty chemicals for everything from aerospace to eyeglasses. the stock was up 34% for the year going into today's session. this is a global operation with substantial business in europe. bunch wasn't willing to let that european business overshadow the positive changes he's made since ppg was the old pittsburgh plate glass. talk about getting busy dying. that's exactly what a legacy company would have been doing without bunch's leadership. getting out of the plain vanilla chlorine business, though it doesn't taste as good as plain vanilla haagen-dasz, makes so much sense. is it any wonder ppg finished up

to a new high of 111.96? how about vf corp., the maker of northface, wrangler after a spectacular quarter. they have made a global push under the ceo which many companies have been punished for. not vf. why? wiseman is always trolling for acquisitions of smaller companies he can then vf-ize to turn into leaner, meaner but more expansive operations to allow him to grow regardless of europe. last year he got timberland and we are seeing the payoff as the international business grew 16% with timberland contributing to that growth. he acknowledged weakness in europe but is using it to his advantage to expand with new brands. if only the european business of every other company was as weak as vf's. yes, we saw it today with walgreen. i prefer cvs which my charitable trust is buying.

you can say, listen, this is over reaction. walgreen was getting busy dying until this morning because of a tussle with express scripts that cost hundreds of thousands of customers that moved to cvs. the ceo of walgreens knew no matter what he did -- acquisitions, raising dividend, he couldn't please shareholders until he resolved the thing with express scripts. people say he caved but walgreens had to get busy living. the result, bringing walgreen back to where it was before the whole kerfuffle started. we are seeing brokers flattering outfits like goldman sachs, morgan stanley. they are not taking advantage of the world's woes. to me seems like they are getting busy dying. wells fargo, the company is soliciting the businesses the troubled european banks need to sell. purchase of energy lending was called as a major growth initiative. i think there are more deals

ahead for wells. they have 30% of the mortgage market already. one reason wells bucked the second day of the down trend closing in on a 52-week high. we know these companies are willing to break up to bring out value are all about the andy dufresne school of management. breakup plays like abbott labs and kraft keep hitting the new high list. procter & gamble, a lot of worth but it's all about staying in shawshank if it doesn't do something. same goes for for j & j although i caught a call to make up for past sins and get a company with declining revenue streams to get busy living. do you know who put this idea of trying to improve the hand is dave cote of honeywell on set yesterday. he's a philosopher ceo more than most. he's more like red if you are looking for the shawshank analogy. he runs a company many people thought, like red, couldn't adapt to the new world outside

of the four walls of honeywell. no one is more aware of the exigencies of the moment than cote. he's passionate about solving the time bomb of the federal deficit. he's become the single most articulate spokesman of all ceos on this important issue. last night he told us he sees five years of no growth on the continent. do you know i almost did a danny thomas spit take, you know like when uncle tunis was in town? fortunately i wasn't sipping my tea at the moment. five years. so does cote sit there and take the warden's beating? does he bemoan the current fragile state of the world's economies and the grim specter of spanish and italian-style debt crushing the u.s.? no. pushes deep into refining chemicals, one of the most aggressive companies in terms of nat gas, coming up with solutions to turn this stuff into the cheapest plastics.

cote recognizes aerospace is in a bull market and put r & d behind the cockpit and his savings and energy works no matter what as the europeans, as desperate as they are still refuse to cut back on going green. have you ever seen anybody try to roll back safety regulations? doesn't get a lot of votes. of course some of the moves by ceos to get busy living aren't being recognized. sandy cutler's attempt to merge cooper with eaton is a nightmare of a stock but he's engineering a dufresne-style break out with the merger. how else do you explain the growth in qualcomm and skyworks? sheer brain power to get more apple. the get busy dying theme is still predominant. alibis and excuses all the time. bottom line. the executives who get busy living are being rewarded with higher stock prices. they are taking their companies

through a river of grime and coming out clean on the other side. the others are doing the warden's bidding. staying in captivity. because that's the only thing they know how to do. glen in illinois, please. glen. >> caller: hi, jim. how you doing? >> real good, partner. how about you? >> caller: just fine. a big b-b-boo-yah from the windy city. >> love it. youkilis. >> caller: first of all, thanks for helping the small fries navigate this market. >> we are all small fries other than the people in jail. >> caller: my question is about disney. i jumped in at $40. i'm sure you'd advise me to take something off the table but merrill-lynch upgraded it to a buy from neutral. the volume has doubled. it hit a new 52-week high on tuesday and the parks & recreation and espn business seems to be doing fine. i also think this viacom dispute will work to disney's favor. should i hang on a little bit

longer and put in a stop-loss or take something off the table? >> this is something that we say no to. let disney go. go to $52.56. not just because of viacom. not just because of theme parks. but espn has to be the most relevant brand in the world. stay with disney. carl in massachusetts. >> caller: thanks for everything you do, jim. >> thank you. >> caller: my stock is whiting usa trust. whx. i have been watching for quite some time. for the last two years it's stayed in the range of 16 to 18. it's gone down, like, 50%. i was going to buy it to be more diversified. i don't know what to do. >> i don't want you to do that. you're looking for oil and gas and income. so i'm going to send you to energy transfer partners, etp, which is a real --

here we go. it's all about red and andy dufresne. brooks. get busy living or get busy dying. look for ceos getting busy living. their stocks are going higher. "mad money" will be right back. >> announcer: coming up, snapping it up. investors took snap-on for a ride after reporting, sending the stock of this mechanics favorite to a fresh all-time high today. is this tune-up just the beginning? cramer is seeing if it's time to start your engines when he rides shotgun with the company's ceo. later, ip whoa! yeah, facebook was a dud. but some ipos have been studs, allowing investors to more than double their money this year. time to jump in or take some profits? cramer is highlighting the best and the worst.

plus, chipping away? after falling off the highs for the year, wall street is rallying behind several top tech names. could technology soon be back in fashion? cramer gets a read from the ceo of one chip maker, next. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] we got a real mom and the family car to do an experiment. we put a week of her family's smelly stuff all in at once to prove that febreze car vent clips could eliminate the odor. then we brought her family to our test facility to see if it worked. [ woman ] take a deep breath,

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maybe it's time to put the reflexive negativity on hold. i'm not claiming the economy is in great shape but it's clear the knee jerk pessimism is starting to cost you money. we have problems, looming fiscal cliffs, slowing in china and europe. it doesn't seem to be stopping well run companies from posting spectacular results. take snap-on, maker of premium hand tools and power tools. gets the majority of sales from auto repair shops and dealerships. they have been selling into agriculture, construction, aerospace, mining and power generation. they have a read on how business is doing around the country and

now around the world. this morning snap-on, one of our favorites since i interviewed the ceo knocked it out of the park. 5.1% organic growth in the commercial industrials. 10% organic growth in tools. they have been around forever. management acknowledged the uncertain global micro economic environment but didn't let it prevent them from posting stellar numbers. these guys are getting busy living for certain. no wonder the stock soared $5.90 or 9.6% today launching to a new high. let's check in with the ceo of snap-on to find out more about the quarter and what's ahead for one of my absolute favorite companies. welcome to "mad money." >> good to be with you. >> first, i have to thank you. i have appropriate -- i try to give you credit when i can -- the line you gave me. i used it on "today" show. we are a cash rich, confidence poor nation. i think that was a great theme in this quarter, too. is it? >> yeah, it is.

i was just out on a truck earlier this week riding around visiting garages. i have to say that, boy, those garages, the businesses seem to be doing pretty well. it played out this quarter in our tools group which is the franchise business which calls on those garages. it was up 10%. we think it was a gangbusters quarter for that particular group. you can see out when you're out in the marketplace when you're talking to the technicians or talking to the franchisees. >> i think you have a unique pulse of 850,000 technicians. forbes said you're the number one franchise place to be. in other words if i want a franchise i should get a snap-on franchise. people don't take the risk if everyone is gloomy. what is it you're seeing? you do offer the best tools. you're superior technologically. is that why you are seeing such franchise formation? i wouldn't start a franchise if

things were as gloomy as i read in the papers. >> i think the papers are wrong about this. when you go out and walk the streets and you're at the grassroots. people are cash rich and at the lower levels they are even reasonably confident. as you move up in the size of the organization confidence tends to wane. that's what you are seeing in the papers. people come to our franchise because snap-on is a legendary product. it all started with the idea that our founder sold tools directly to mechanics. he laid them out on green felt in 1920 like they were as rare as surgeon's knives, implying that if the mechanic used those tools he would be as high a form a craftsman as the surgeon himself. that idea has worked its way down through the generations so people who own snap-on tools view themselves as a special professional. that's why we say we make work easier for professionals who work in critical tasks.

the idea of the snap-on brand being so important to so many people, those 800,000 technicians around the country, accrues favorably to the people who sell those. that is the franchisees. that's why it's popular. >> i would be remiss if i didn't bring up the aerospace business which out of nowhere has taken off. you have taken this brand and applied it to another area where people need professionalism and only find it from snap-on? >> exactly. it's this way. we operate in the space of criticality, where the penalties for failure are high and the need for repeatability and reliability uses snap-on premiums. we were focused on auto mechanics but the brand has weight in a number of critical places. aviation, aerospace, military, oil and gas, power generation.

all of those are there and snap-on with that great brand has never mined them. one of the great things about this quarter was we saw double digit growth for our business in those critical industries. that's proof of concept that the brand can roll right out of the garage into critical industries. same thing can happen for emerging markets. >> you know, asia. we all talk about europe which you were quoted. hasn't gotten any worse. but asia is strong. >> asia is strong. the thing about asia for us, it's different than most people. you think about it. last year in china they bought more new cars than the united states and north america. for a new car market or a new airframe market or new jet engine market, asia is already possibly the biggest market, but in repair it's different. there are 300 million vehicles on the road in north america. the average age is 11 years old. those are the metrics that require over a million

technicians in 300,000 shops we call in. in asia, china, despite the fact they sold bigger or higher number of new cars, there's only 60 million cars on the road and they are all new. the repair wave hasn't started. what we are doing is establishing our physical presence, building factories and distribution and salesmen to take advantage of that wave. and so right now the emerging market business is somewhere between 5% and 10% of our business but it's going to go up as that wave rises. >> i've got to tell you. this is exceptional. i have to ask one last question. do a lot of people feel american brands, american name not as great as it used to be. snap-on resonates in europe and in asia as if it's america. >> sure. i'll tell you what. we sell snap-on brand today to people like thai airlines and many of the airlines throughout asia because they value that brand.

we sell it in europe. in the united states, we manufacture 80% of what we sell right here in our factories in america. so we like to say don't tell us that you can't manufacture in america because snap-on is proof that you can do it every day. we have been pretty successful. >> and you made a lot of money for shareholders. what a great company. you are terrific. thank you so much for coming on "mad money." >> thanks a lot. okay. good to be here. >> that's nick pinchuk of snap-on incorporated. now you know why i'm so excited about this old brand that's very new around the world and doing unbelievably well. stick with snap-on even though it's up five and stick with cramer. >> announcer: coming up, ip whoa! yeah, facebook was a dud. but some ipos have been studs, allowing investors to more than double their money this year. time to jump in or take some profits? cramer is highlighting the best and the worst. all coming up on "mad money."

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looks like the ipo market is finally recovering from the trauma of the facebook fiasco. [ booing ] and it's roaring back to life. that's my take away from five below. did you see today's deal? the kid oriented dollar store i told you to get your hands on earlier this week. remember the logic. i said the disgust with the stock market and ipo process was

so great that the bankers behind the new crop of deals would engineer a few for a first day pop, make a little moolah and of the four expected to be public five below was my favorite. sure enough the stock price $17 opened at $26. instant gain closing up 56%. i like five below. but come on. let's be prudent about this. after that kind of crazy move it's not wrong to take profits. that's called discipline. now that we have a new crop of deals i thought it would be good to circle back, go over all the companies that have come public and find the best and worst of the newly minted ipos that don't get publicity once they are done. which deserved to be bought, which sold. so far in 2012 we have had very paltry numbers, 75 ipos. stick with the extremes, the ones that really stick out top and bottom. let's start with the top performers.

first sync, like the boy band. a cloud-based online content delivery play came public on my birthday, february 10. this stock debuted at $5 a share. it's rallied more than 160% to $13.02. it's tough to navigate. now at 40 times next year's earnings. ooh. upper limit of what growth oriented managers are willing to pay. don't be greedy here. if you own it, you must absolutely take something off the table. at least ring the register in your initial investment so you only play with the house's money like we suggested with arena pharma. something greeted with catcalls and boos but turned out to be not stock bashing but shrewd advice. then in the top spot there is supn, a drug company which came public may 1 and has been rallying like crazy this week.

stock moved up another 9.6% yesterday. today put on another 1.5%. hey, i'll take that. it is now up 197% from where it came public. it has a promising epilepsy drug in october. but after the run in the stock the only responsible course is to take profits. i'm supposed to be a permanent bull. isn't that the rap on cramer? take profits. i have to. bulls make money. bears make money. pigs get slaughtered. don't be a pig on these. it's time to take a victory lap if you got in on either of the year's two best performers. be a gracious winner. don't push your luck. next up, which of this year's newly minted public companies have been downright dangerous and should be sold with extreme prejudice? these are funny when you look at them. sometimes the market provides a

tremendous sense of humor. you get a sense of humor from the u.s. attorney. you get it from the ipos. ignite restaurant group. del frisco went public last week. i like to go there. ignite restaurant group. irg, the parent company of joe's crab shack, of course. it's a terrific chain that turned into a horrific stock. it came public in may rocketing up to 19.60 this month. we found out about an accounting error that will delay the second quarter earnings. the first quarter as a public company? and caused them to have to restate earlier results. the stock has been slammed down 21.5% yesterday, 20% today. it's not too late to sell it. it's still less than a dollar above where it came public. my rule is accounting irregularities equals [ sell, sell, sell ] and that's true for a fresh-faced ipo that screwed things up right out of the gate. joe's crab shack. eat the crabs, skip the stock.

i'd also be a seller of wage works. that went public may 9 at $9. rallied up to $13.61. this is an employee services company that lives in the same universe as avp or paychex but it's way more expensive. come on. paychex has the good yield. this feels like a stock priced for perfection. that's no good when hiring is anemic. are there any ipos from 2012 i endorse right here? when looking at newly public companies you want to find the ones that are overlooked, stocks yet to run. i've got one. pretty darn interesting company. it's the merrimac pharmaceuticals. a biotech firm that's up 25 cents since then. tiny market cap. this one has potential. even though merrimac doesn't

have products on the market, you don't look at these like that. these are specs. it has a terrific pipeline including orphan drugs that get extra attention from governments because they treat rare diseases. the main drug is a pancreatic cancer treatment. this is a breakthrough drug that increases overall survival of pancreatic cancer patients. by 5.6 months, well above what's normally seen. this could do $900 million in sales in the u.s. alone. plus mm-398 could be used for other diseases like colorectal cancer. merrimac has also partnered with sanofi-aventis on mm-121 in phase two trials for breast cancer, ovarian cancer and non-small cell lung cancer. it could do a $1.3 billion in the united states.

remember, phase two, long way from hitting the markets. speculative. granted you are playing fda approval roulette but it's so cheap the odds are in your favor. even if only one of the leading drug candidates ultimately is approved, the stock is cheap. that said, there is no reason to hurry. merrimac doesn't have immediate catalysts. do not buy it tomorrow. don't buy it in after hours. don't buy it if it spikes from these levels. why bother? you know, there will be people willing to wait, do the work, get it at a better price than tomorrow if you buy it. you can be patient. wait for a pullback. i'm begging you, limit orders. look at the ipo class of 2012. time to ring the register on supn and sync. dump irg and wage works. merrimac is a buy. we may return to it again and again but not something worth paying up for simply because "mad money" highlighted it as a good long term speculation as

part of a know your ipo segment on this evening's show. john in california, please. john. >> caller: jim, love your show. boo-yah. >> oh, man. thank you. i'm feeling some love on the show. feeling some love. what's up? >> caller: i tell you what. i have been watching a long time now. you're a great source of information for us out here that ain't too computer savvy. i watched the show where the guy was going to put stations across the country for natural gas for trucks. all trucks have to be transferred to natural gas needing allison transmission. i bought the stock back in march. great company. i know the product is fantastic. all trucks will need it. what's up with the stock? >> the truck bull market ended. allison really came in at the right moment. i remember when the deal was worked. i say it came at the right moment. once the truck segment plunged there is no saving anything. that means cummins which is down badly.

it means any company, packar, navistar. the new cycle will take time. i think it's a value play. but remember, it's down badly. there will be a lot of tax losses between here and the end of the year. tom in texas. tom. >> caller: boo-yah from tyler, texas. we love your show. >> i have been to tyler, texas. i went to a used car dealer there. it was called the caveat emptor corporation. there's some truth. >> caller: we believe in that in texas. acquisitions as a means to grow and expand while simultaneously considering selling off their crown jewel mine in indonesia's mining laws. a huge export tax on unprocessed minerals. considering that and the ginormous mine mongolia ahead of schedule to ship copper cheaper by train to china than fre port can ship by sea from indonesia my question is, is freeport a

bunch of boo-yah or a lot of hoo-ha? >> this guy tells the truth. i remember when the stock was 70 and he said it was expensive. when it was yielding 4% was the time to pull the trigger. now you have to wait for a pull back. you just outlined the truth. all people care about is china growing at 7% or 9%. you recognize the tremendous value and he's very careful about indonesia and your qualification that it's chavez-like, i totally agree. stick with freeport but don't chase it. also from texas, dario. >> caller: boo-yah, jim. thanks for having me on the show. >> thanks for being here. >> caller: my question is about annie's. it was doing really well but then when the nasdaq re-corrected it sunk. should i hold it or see if it has more potential or sell it

now if you think it will go down farther? >> this is a tough question. i remember we put numbers out and people said we were pie in the sky. people said i was a moron. it loses flavor after 67 years. but here's what i think. i think it wouldn't be wrong to take a little profit. it's now expensive versus whole foods and hain. both those have longer track records. ipo grades are in. supn and sync get a's for performance but sometimes you want to cash in. take a look at merrimac. do some homework. pay above 8 for it, i'll track you down and say, hey, you don't know what you're doing. stay with cramer. >> announcer: coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. later, chipping away? after falling off the highs for the year, wall street's rallying behind several top tech names. could technology soon be back in fashion? cramer gets a read from the ceo

of one chip maker next. all coming up on "mad money." tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep. and lunesta can help you get there, like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. abnormal behaviors may include aggressiveness, agitation, hallucinations or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions, such as tongue or throat swelling, occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness and morning drowsiness. ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as $15 at lunesta.com.

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and get the all day pain relief of aleve in liquid gels. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning

round. this is cramer's "mad money." starting with benny in massachusetts. benny. >> caller: boo-yah, this is benny from boston. agnc. american capital agency corporation. >> yeah. you know what? people want me to just continue to love this stock. they keep doing these equity offerings. it's worth $32 million, so [ it's worth $32 million, so [buy, buy, buy ] i'll stick with it. steve in florida, please. steve. >> caller: anadarko petroleum. >> isn't that funny? the talks broke down. they're selling the brazilian assets. they are doing everything right. i'm not abandoning here with natural gas threatening to take three bucks. alex in texas. >> caller: yes. hi, jim. please tell me about lockheed martin, lmp. >> everybody's worried about the fiscal cliff and defense spending.

i have a 4.5% yield, a lot of upside, a chart that i like. [ buy, buy, buy ] john in my home state of new jersey. john. >> caller: hey, jim. want to send out a real quick boo-yah to you and your terrific "mad money" team. >> the greatest people. best staff. everybody knows it. everyone wants to be on it. yeah! >> caller: i have a dangerously high yielder. i have been doing homework on it with the assumption they will slash the dividend. banco santander. san. >> i admit to being worried about it. the reason there is a tie which i don't want to get near at this time. here's the problem. spain is a disaster. i was talking to a banker yesterday and said i feel bad for the people at banco santander. they're the best bank in spain, but they are in spain so i can't recommend the stock.

adam in new york. adam. >> caller: hi, jim. >> how are you? >> caller: good. how are you? >> all right. >> caller: so now that morgan stanley reported earnings, what's your play? would you consider it to be a good one or stay away? >> you know, i've got to tell you. it would be easier to say about morgan stanley's spanish brokerage. there's nothing there for me. i'm sorry. you know, i like wells fargo and i like jpmorgan. jpmorgan had a losing season. okay? this is a new season and i like jpmorgan. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. s gotta be just righ. perfect golden color. rich in fiber. my dad taught me, and i taught my son out there. morning, pa. wait... who's driving the...? ♪ 99 bushels of wheat on the farm, 99 bushels of wheat ♪

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have the semiconductor stocks finally bottomed? yesterday we got a tradeable bottom in semis after intel reported a shortfall and went higher anyway. a trading bottom happens when people get too negative is not always synonymous with an investable buy which comes from a real turn in the business. what kind of bottom are we looking at here? we need to gather more intelligence before we can come up with an answer, which is why i want to drill down into xilinx, the semiconductor company that guided down expectations. they make programmable logic devices which are highly flexible chips that buyers can customize and use for all sorts of applications, a lot having to do with communications. i can tell you honestly it looks

cheap given that the company has $9.33 in net cash, 30 buck stock. trading at 11 times 2013 numbers. 12% long term growth rate. beyond that we have to figure out what's going on here. let's go to the president and ceo of xilinx to dig deeper into the quarter and the company's prospects. welcome back to "mad money." >> hi, jim. great to be back. >> all right. you have to walk me through something. i thought you had a phenomenal quarter. i thought it was all systems go. i don't understand how, given 4g, the need to spend, given what i'm hearing from the wireless companies, how you can be as downbeat as you were about the next quarter given your book of business and how strong your technology is. >> well, we were very pleased with the quarter. it was up 4% above the middle of our range. actually, we saw huge growth in new technology, 31% quarter on

quarter. so we believe things are poised. we just think there is a little softness that the customers are being a little cautious. the cycles in terms of purchasing are very short. so they can afford to buy at the very last minute. we felt that caution is the right way to go. having said that, we think all of the medium and long term trends are there to support us and our portfolio position is phenomenal. we are looking forward to renewed growth in the future. >> you did call out that the telco companies in the united states have to spend. here's john olsson. terrific cfo. verizon, att, sprint, t-mobile, they all have to spend. could they take a pause and come back with a general vens in the fourth quarter? >> that could be the case. we expect wireless in north america, japan and korea to grow in the september quarter. we actually think wireless is doing reasonably well. we think the investment in wired communication is a little

softer. we expect it to recover, too. there is no doubt the transition to wireless communications is going to drive infrastructure growth going forward. >> when you talk about macro, we spent a lot of time on the show trying to figure out how the macro can impact people to the point where really good companies just witness a slowdown totally out of confidence. what is the type without mentioning -- i don't want to put any of your customers on the spot here. what is the type of industry that reads the papers and says, you know, i have to be more you know, i have to be more careful? what kind of industry does that? >> we are very broad with over 20,000 customers in numerous applications. customers like cisco, ericsson, sony, panasonic, companies in the automotive space. they really ebb and flow at different points in time. we think everyone has gotten up in the morning for such a long period of time and read about softness in north america, the crisis in europe and the little

slow down in asia and emerging economies. people are just being a little cautious. when you couple that with the lead times which are very short, we expect for that to have a little hiatus in terms of growth. as i said before, i don't see the trends changing on a medium term and we expect them to recover really quickly. >> let's talk about that. the language you are using is very constructive. you're saying that orders have slowed down but there are no order cancellations or push-outs and no increase in those. that gives you faith. i'm trying to build a fourth quarter case for you guys. we have a summer slow down. i totally get that. but the balance sheet is great. the yield is terrific. i'm looking for a place to get involved when everyone is too pessimistic about you. i wonder if it's right now. >> we definitely think our technology position and in particular the new 28th animator which shipped $10 million and we

expect to ship $20 million this quarter is the platform that will drive growth. it's like a big rocket ship. we have filled the rocket up with liquid fuel which are the design wins and revenue. that will grow over the next few quarters. we believe that's a huge factor of growth for us. we have a very strong competitive position. a very broad portfolio. in my mind that's the biggest driver of our growth going forward. we have given a lot of proxies for that, but now that the revenue is starting to happen, the real excitement should start hitting soon. >> you talked about it and said acceleration, which is the fastest that you have seen. sir, i have to tell you. i know your caution is admirable but the stock is too cheap. i'm sticking by my view of your stock. president and ceo of xilinx, thanks for coming on. always good to see you, sir. >> thank you, jim. >> look, some like it hot.

some like it tepid. this is a tepid quarter for xilinx and it's something you ought to take advantage of. not run from. after the break i'll try to make you even more money. d today? three...four cups? [dumbfounded] well, we... doesn't last long does it? listen. 5-hour energy lasts a whole lot of hours. so you can get a lot done without refills. it's packed with b-vitamins and nutrients to make it last. so don't just stand there holding your lattes, boys. make your move. we'll take the 5-hour energy. smart move. 5-hour energy. hours and hours of energy. [ female announcer ] pop in a whole new kind of clean. with new tide pods. just one removes more stains than the 6 next leading pacs combined pop in. stand out.

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we have three forces driving this economy. i'm going to talk about them even if no one else wants to. these drivers are so stark i

think you ignore them at your own pocketbook's peril. they go unheralded because of worries about weak employment numbers, fiscal cliffs, unsustainably high spanish bond yields, you name it. people like to talk negatives because the positives either seem like they aren't rigorous or make you sound ignorant of the big issues. i want to stipulate up top, i am a not ignorant of the big issues. i can talk about them all day. i'm checking the european bond auctions at 4:30 in the morning. i'm aware the taxes are going up big. i keep going over the quarters and we have heard from a fifth of the companies already. i see three things stick out in my face. first is automobile. bills remain strong. union pacific, what an amazing company. they talked about cars as being a huge driver of rail traffic, enough to help offset the decline in coal. csx said the same thing earlier.

why don't we know this auto theme with the possibility they could build 14 million cars in 2012? this is obscure because gm and ford are so international. the international businesses are disasters right now. you can't see the strength through those markets. we don't want ford or gm to pull back from europe or latin america. that would be stupid. u.s. ford, 15 bucks by now. general motors, just u.s., 25. what can i tell you? domestic security. second, housing. how strong is it? even the most wildly consistent housing plays are working. witness the run in whirlpool. remarkable. it's tough to recommend standard pacific after these runs. that doesn't mean you can't pounce at the right moment. listen, toll dropped from 28 to 23. pulte sold off by 25%. you have to -- yeah, that's right, pull the trigger.

we have a developing housing shortage. i can't believe i have to say that. but it's true. these are the guys with the homes. finally there is aerospace. it is so easy to miss these stocks because of worries about airlines, slow downs in china. look at textron. up 11%. amazing numbers from cessna. go listen to dave cote, ceo of honeywell. he made it clear aerospace is fits and starts. anyway, is it rally possible near one of the boeing delivery, the cycle is over. i call it ridiculous. three drivers that are working in this horrendous environment. who knows what would happen if things got better? in the interim when we get our pullbacks these are the themes that have our backs that can be bought into weakness provided you don't put too much emphasis on the international players and you stick with as much domestic security as you can muster. stick with cramer.

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